First Financial Holdings said Monday it would record a loan-loss provision of approximately $73 million for the quarter ended June 30.
The Charleston-based parent of First Federal Savings and Loan said in a filing with the US Securities and Exchange Commission that the charge comes after reclassifying some $155 million iu loans.
The reclassification is related to the company pursuing potential “loan-sale alternatives that are expected to result in the disposition of these assets by calendar year end,” First Financial reported in the SEC filing.
“The sale of these loans will result in a substantial reduction in our nonperforming assets and accelerate the return to core operating earnings,” First Financial Chief Executive Wayne Hall said in a statement. “This is an important step towards strengthening our balance sheet and positioning the company for the future.”
First Financial, like many banking companies with significant operations in coastal areas, has had a rough go of it the past few years.
While the company has had a relatively small loss of approximately $1.2 million through the first six months of fiscal year 2011, it recorded a $36.8 million deficit during fiscal year 2010.
First Financial is trading for $9.25 a share, well off its 52-week high of $13.19.